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A Unified Theory of Underreaction, Momentum Trading and Overreaction in Asset Markets
We assume that the instantaneous riskless rate reverts towards a central tendency which in turn, is changing stochastically over time. As a result, current short-term rates are not" sufficient toExpand
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What Do a Million Observations on Banks Say about the Transmission of Monetary Policy
We study the monetary-transmission mechanism with a data set that includes quarterly observations of every insured U.S. commercial bank from 1976 to 1993. We find that the impact of monetary policyExpand
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The Impact of Monetary Policy on Bank Balance Sheets
This paper uses disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission. We argue that if the lending view is correct, one should expect theExpand
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Firms, Contracts, and Trade Structure
Roughly one-third of world trade is intraŽrm trade. This paper starts by unveiling two systematic patterns in the volume of intraŽrm trade. In a panel of industries, the share of intraŽrm imports inExpand
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Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior
This paper develops a model of inefficient managerial behavior in the face of a rational stock market In an effort to mislead the market about their firms' worth, managers forsake good investments soExpand
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Herd Behavior and Investment
This paper examines some of the forces that can lead to herd behavior in investment. Under certain circumstances, managers simply mimic the investment decisions of other managers, ignoringExpand
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Stock Price Distributions with Stochastic Volatility: An Analytic Approach
We study the stock price distributions that arise when prices follow a diffusion process with a stochastically varying volatility parameter. We use analytic techniques to derive an explicitExpand
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Exchange Rates and Foreign Direct Investment: an Imperfect Capital Markets Approach
We examine the connection between exchange rates and foreign direct investment that arises when globally integrated capital markets are subject to informational imperfections. These imperfectionsExpand
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Differences of Opinion, Short-Sales Constraints, and Market Crashes
We develop a theory of market crashes based on differences of opinion among investors. Because of short-sales constraints, bearish investors do not initially participate in the market and theirExpand
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Takeover Threats and Managerial Myopia
  • J. Stein
  • Economics
  • Journal of Political Economy
  • 1 February 1988
This paper examines the familiar argument that takeover pressure can be damaging because it leads managers to sacrifice long-term interests in order to boost current profits. If stockholders areExpand
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